Mexico is working to stall or reduce Trump's 25% tariff on foreign-made autos. Canada denounced Trump's executive order but Mexico is taking a more subdued approach.

A full-blown tariff war with the US could prove a gut punch for Mexico, which is already battling an economic slowdown. Latin America’s second-biggest economy depends heavily on its commercial relationship with its northern neighbor — its top trading partner by a wide margin.

Industry dealers and analysts are reacting to the news of Trump's 25% tariffs on imported vehicles saying it will dramatically raise costs for all.